Key facts
- New Zealand's petroleum regulator granted a 10-year mining permit to Matahio NZ Onshore Limited.
- The permit covers the Puka oil and gas field and the Oru prospect in the Taranaki region.
- The field is estimated to hold 170,000 barrels of oil and 1.3 billion cubic feet of gas.
- Prospective resources for the Oru prospect are estimated at 1.8 million barrels of oil and 1.2 billion cubic feet of gas.
- The government aims to increase domestic natural gas supply and generate export earnings from oil production.
- This follows the lifting of a ban on oil and gas exploration earlier in the year.
New Zealand's petroleum and mining regulator has issued a 10-year permit to Matahio NZ Onshore Limited for the Puka oil and gas field in the onshore Taranaki region. This decision comes as the country grapples with energy security challenges stemming from declining domestic gas reserves.
The permit, granted by New Zealand Petroleum and Minerals (NZP&M), includes the promising Oru prospect and is expected to bolster the domestic natural gas supply over the next decade, while also generating export revenue from new oil production. Matahio estimates recoverable reserves from the Puka discovery at approximately 170,000 barrels of oil and 1.3 billion cubic feet of gas. An independent assessment of the Oru prospect suggests prospective resources of 1.8 million barrels of oil and 1.2 billion cubic feet of gas.
Resources Minister Shane Jones highlighted the permit's importance in addressing ongoing energy security concerns. He emphasized that natural gas remains critical to New Zealand's energy mix, supporting electricity generation during periods of low renewable energy output and providing essential energy and feedstock for numerous businesses. Currently, all gas produced in New Zealand is consumed domestically, while the light, high-quality oil is sold internationally.
This development follows the government's earlier decision this year to lift a ban on offshore oil and gas exploration, awarding the first exploration license after the previous administration had sought to transition away from hydrocarbons.